Hitzu Company sold a copler (that costs $6,500 ) for $13,000 cash with a two-year parts warranty to a customer on August 16 of Year 1 . Hitzu expects warranty costs to be 3% of dollar sales. It records warranty expense with an adjusting entry on December 31. On January 5 of Year 2 , the copler requires on-site repairs that are completed the same day. The repairs cost $116 for materials taken from the parts inventory. These are the only repalrs required in Year 2 for this copler. Exercise 11-12 (Algo) Warranty expense and liability computations and entries LO P4 1. How much warranty expense does the company report for this copler In Year 1 ? 2. How much is the estimated warranty liability for this copler as of December 31 of Year 1 ? 3. How much is the estimated warranty liability for this copler as of December 31 of Year 2 ? 4. Prepare Journal entrles to record (a) the copler's sale; (b) the adjustment to recognize the warranty expense on December 31 of Year 1; and (c) the repalrs that occur on January 5 of Year 2. Complete this question by entering your answers in the tabs below. 1. How much warranty expense does the company report for this copier in Year 1 ? 2. How much is the estimated warranty liability for this copier as of December 31 of Year 1 ? 3. How much is the estimated warranty liability for this copier as of December 31 of Year 2